#16Yo

ung

Com

pany

Fin

ance

Rep

ort

April 2014News, comments and analysis on the young company market in NZ

New top AngelThe new chair of the Angel Association is Marcel van den Assum.

NewbiesStartup shows the 14 companies receiving a first round of angel investment in the last six months of 2013.

Spreading his wingsFind out what made Mark Wynne spread his wings into angel investing.

Clean tech start-upMark Hartstone’s Hydroxsys has raised $2.1 million – one of the largest seed investment rounds ever raised in New Zealand.

Cover: Hydroxsys chief executive Mark Hartstone

Young Company Finance Index

START

UP.

Growing investor confidence in the New Zealand technology sector led to a marked surge in investment

activity during the year, with software and services leading the charge.

While the strong performance of NZX listed technology companies such as Xero, SLI Systems and Pacific Edge undoubtedly spurred much of the renewed market appetite, the surge in angel investing also reflects the strong pipeline of new opportunities coming into market.

The Seed Co-investment Fund (SCIF) also had its biggest year yet, with $6m invested into 22 new and 31 follow-on investments. The private sector invested a further $19m alongside SCIF.

It is heartening to see the angel investing ecosystem in such good health and we look forward to supporting both existing partnerships and new angel groups coming to market in the year ahead.

Franceska Banga

Franceska BangaChief executive of the NZ Venture Investment Fund

The substantial increase in investment last year shows the enthusiasm angels have for supporting

entrepreneurial endeavour and the economic value this generates.

The high level of follow on investment re-enforces angels’ commitment to businesses with potential, and recognises that it takes time and effort to achieve results.

Because our formal angel community is relatively young, we shouldn’t be surprised to see investment levels and outcomes fluctuate. This reflects the risk of angel investing and reinforces the importance of consistency in policy and process to provide a base of certainty in very uncertain new markets. Offsetting risk are the rewards, including the upturn in IPO, venture and private equity activity, which represent successful angel investment outcomes and engender increased confidence in early stage ventures.

Marcel van den Assum

Marcel van den AssumChair of the Angel Association of NZ

Angels soar as tech sector flourishes

Angels invested $53.2 million into young New Zealand companies in 2013 – a record high and an 80 percent increase on the $29.9 million invested in 2012.

Cumulatively, $297.7m has now been invested into young companies by angels since the Young Company Finance Index began measuring activity in 2006.

CUMULATIVE INVESTMENT OF

Sector Track2013 saw a marked surge in investment into software and services. Companies in the sector attracted $25.4m of investment – an increase of over 140 percent on the $10.5m invested in 2012. Health sector companies also saw a large rise with $6.9m of investment in 2013 compared with $1.7m the previous year.

Software and Services sector

$25.4mHealth sector

$6.9m

Ang

els s

oar t

o th

e he

aven

s

3 Star

tup.

The

You

ng C

ompa

ny F

inan

ce R

epor

t.

$297.7m

RECORD HIGH

#1

2012

2013

$29.9m

$53.2m

20062013

Capital Invested

2006

$

$5m

$10m

$15m

$20m

$25m

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2007 2008 2009 2010 2011 2012 2013

Amount Invested Number of Deals

2013

Inde

x Su

mm

ary

4Star

tup.

The

You

ng C

ompa

ny F

inan

ce R

epor

t.

Last year saw a larger average deal size ($497,486) than in 2012 ($298,968). In 2013, 58 percent of investment deals were $250,000 or less compared with 67 percent in 2012.

In terms of the stage of investment, $13.8m was seed investment, $29.6m was at the start-up stage, and $9.2m at the early expansion stage.

80/20$13.8m

Of the $53.2m invested in 2013, 80 percent ($42.8m) was follow-on investment and 20 percent ($10.5m) was new investments.

$ 58%

67%

$497,486LARGER AVERAGE

DEAL SIZE

AVERAGE DEAL 250K OR LESS

AVERAGE DEAL 250K OR LESS

2013

2012

$29.6m $9.2m

BY THE NUMBERS

2013 saw 79 percent of deals syndicated between different angel groups, a continuation of the trend to greater collaboration between angel groups.

In terms of the type of investments angels made in 2013, 26 percent of investments were convertible loans, 51 percent were ordinary shares, and 22 percent were preference shares.

Since 2006, by region, 55 percent of investment was in Auckland, 10 percent in Christchurch and in Wellington, 7 percent in Dunedin, and 5 percent in Palmerston North and in Hamilton. Software & services received 32 percent of the amount invested, followed by pharmaceuticals/life sciences technology (19%), technology hardware and equipment (12%), and food & beverage (8%).

2013

Inde

x Su

mm

ary

5 Star

tup.

The

You

ng C

ompa

ny F

inan

ce R

epor

t.

32% SOFTWARE AND SERVICES

10%

WELLINGTON

10%

CHRISTCHURCH

7%

DUNEDIN

HAMILTON

5% 5%

PALMERSTON NORTH

55%

AUCKLAND

8%FOOD AND BEVERAGE

12%TECHNOLOGY HARDWARE AND EQUIPMENT

19%PHARMACEUTICALS LIFE SCIENCES TECHNOLOGY

79%COLLABORATION

CONVERTIBLE LOANS

PREFERENCE SHARES

ORDINARY SHARES

26%

51%

22%

New

s and

num

bers

6Star

tup.

The

You

ng C

ompa

ny F

inan

ce R

epor

t.

Young Company Finance Index

Capital Invested - Half Year

Year Amount invested Number of deals

2H2006 $13,385,298 18

2h2007 $18,624,458 34

2H2008 $16,884,069 24

2H2009 $17,535,232 35

2H2010 $23,389,835 70

2H2011 $15,910,273 47

2H2012 $14,659,840 54

2H2013 $29,510,101 64

Capital Invested - Full Year

Year Amount invested Number of deals

2006 $21,366,964 30

2007 $29,518,348 55

2008 $32,569,403 41

2009 $43,238,580 75

2010 $53,109,861 112

2011 $34,798,049 103

2012 $29,896,789 102

2013 $53,230,971 116

Total $297,728,965 634

Angels numbers growing

The energy and activity reflected in the Angel Association of New Zealand’s numbers is mirrored in the Association’s achievements last year. In December 2012, AANZ estimated there were about 350 angels active in 7 networks across the country. By December 2013, we estimate there are over 150 new investors engaged in angel investment.

A new angel network especially for women, Arc Angels, based in Auckland but operating in Wellington, Christchurch and Queenstown, is up and running with 17 new members and double that in prospective members and having made its first investment. AANZ is also supporting networks to get established in Invercargill, Hamilton and Whangarei.

Angel Summit 2014

Prominent US angel John Huston will be the keynote speaker at this year’s 15-17 October summit in Auckland. He founded Ohio TechAngels, has been US Angel Capital Association’s Chair, and been instrumental in establishing best practice in every aspect of angel operations. He will share insights on being an effective lead investor, syndicator and why he still engaged in angel investment.

As well as putting on another great summit this year (Bill Payne labelled last year’s one of the world’s best), the AANZ’s other priorities are to continue to raise the profile and rewards of angel investment, to continue to support international connections for angel ventures, to access international markets and further funding, and to continue to support professional development within the industry.

Angel news Suse Reynolds ANGEL ASSOCIATION EXECUTIVE DIRECTOR

Cle

an te

ch st

art-

up

7 Star

tup.

The

You

ng C

ompa

ny F

inan

ce R

epor

t.

Clean tech start-up completes $2m funding round

The company – which originated in a Hamilton garage, migrated to a back shed in suburban Auckland, and is now co-located at the University of Auckland’s Tamaki Campus – raised the investment from a number of angel investors led by Sparkbox Ventures and including the New Zealand Venture Investment Fund.

Other investors included Stephen Tindall’s K1W1 fund, Lewis Holdings Limited, the Manawatu Investment Group, and a number of angel and high net worth investors.

Sparkbox Ventures’ Andrew Duff, who is a Hydroxsys director, said the company is now moving to develop scalable production of its membranes as it shifts into on-site testing to validate the technology’s capability in the field.

“The backing Hydroxsys is receiving shows the significant potential this company has. Like Lanzatech is doing in sectors which burn fossil fuels, the Hydroxsys membrane has the capacity to significantly clean up industries like dairy processing and mining.

“Following this investment round, Hydroxsys’ membrane is moving into pilot production with an Australian partner to assess its performance in the mining of gold, bauxite and coal seam gas. In addition, field trials will commence with a dairy partner in the fourth quarter 2014.

“Our aim is that by the second quarter 2016 we will be supplying equipment into dairy and mining companies on a commercial basis.

“The company will require significant more investment as it moves into commercial production and develops offshore markets. We are currently in discussions with a number of London investors who are very interested in the technology and its potential. The right sort of offshore investment will assist the company as it looks to develop into major international markets.”

Hydroxsys chief executive Mark Hartstone said the company is fielding approaches from large international companies. In addition to dairy and mining, there is interest from sectors including water and waste-water treatment, desalination, and food and beverage companies.

“This technology could change the nature of some industries, cleaning up sectors which are regarded as ‘dirty’. Our membrane’s advantages over other competing technologies lies in its ability to operate efficiently in environments which existing membrane technology is not able to operate in, thereby making large energy savings, increasing productivity and reducing operating costs.

“Instead of dirty waste products going down the drain, the membrane allows for clean water to be separated from pollutants in industrial processes and then safely disposed of or recycled. It is also far less energy intensive than other membrane systems.

Hydroxsys, which has developed clean-tech membrane technology for use in a range of industrial processes from dairy processing to mining, has raised $2.1 million – one of the largest seed investment rounds ever raised in New Zealand.

Spreading your wingsby Lesley Springall

International corporate highflyer Mark Wynne joined Auckland’s angel investment group, the ICE Angels, in August 2012 after returning from Sydney where he was president of Kimberly-Clark South Asia. Within a year he’d made four investments and become a key player in the ICE Angels’ evolution. A former managing director of Fonterra Brands, Wynne had never considered angel investing before so what, asks Lesley Springall, made him spread his wings?

What do you bring to the small companies you invest in?Small companies don’t have a lot of resources because they don’t have a lot of money, so that’s certainly one thing. But inside a corporate you learn a lot and I’ve been very much on the innovation side so I’m very familiar with this space and the development programmes, challenges and opportunities these young entrepreneurs will face. It’s about bringing a bit of the school of hard knocks, the grey hair, call it what you like, but that experience to the table.

And what do get back, because you can’t guarantee those investment returns?No you can’t. So for me the most exciting thing is the buzz, the connection of working with the entrepreneurs, listening to their dreams and helping some of those dreams become reality.

What’s the most important piece of advice you’d give to a new angel investor?There’s no magic bullet, no template. Each opportunity needs to be assessed on its own merit. For me it’s about whether I understand and like the idea, is it somewhat unique, and the quality of the people, particularly the entrepreneur and if they are willing to listen enough. One of the strengths of an A

ngel

Pro

file

Mar

k W

ynne

8Star

tup.

The

You

ng C

ompa

ny F

inan

ce R

epor

t.

It was three things really. It’s a networking opportunity, where you can hook up with a number of people of a similar mindset. You can share your experience with younger entrepreneurs who have great ideas but, in most cases, limited experience and it’s about investing and hopefully making some money out of it one day.

entrepreneur is they say, ‘to hell with the world, I’m doing it my way,’ and that may get them up and running, but can they actually listen because there are smart people out there who can really help them on their journey.

Why’s it important to be part of an investment group?It brings diversity of thought. The makeup of a group like the Ice Angels is incredibly diverse and that’s its strength. When we look at an opportunity we look at it from our own experience and perception, so when we come together we can see the opportunity and the issues from a number of different angles.

You really don’t want all your eggs in one basket, so it’s best to spread your investments and do a number of smaller ones rather than one big one, because while you might like the idea you still run a higher risk of failure with early stage companies.

How important is angel investing to the future of NZIt’s huge. New Zealand needs to build a whole raft of big companies and that can only happen when you start at the other end and build a whole raft of small companies. These guys are on the front edge of so many technologies, business models and different ways of going to the world. Yes, some will fail, but a lot will be successful and hopefully will grow up to be bigger, stronger companies that create jobs.

Is there anything the government should be doing to help grow this space?The Icehouse has been in the business since 2003 and we’re now close to $50 million in our capital portfolio. It’s taken a long time to get there, but now it’s accelerating. So what would we really like from the government? Making facilities and money available is always attractive but the main thing is not to start changing the rules because these things take time to nurture and grow. A

ngel

Pro

file

Mar

k W

ynne

9 Star

tup.

The

You

ng C

ompa

ny F

inan

ce R

epor

t.

Ang

el U

pdat

e

10Star

tup.

The

You

ng C

ompa

ny F

inan

ce R

epor

t.

The new chair of the Angel Association is Marcel van den Assum. He takes over from Ray Thompson who has stood down after two years as chair, following a tenure which has seen the increase in angel groups and numbers, and a resurgence in investment activity.

Marcel, who is from Wellington, served as deputy during the past two years. He is part of both Angel HQ and Ice Angels, and chairs the board of promising start-up Green Button.

His other roles include directorships of a number of companies, including Angel HQ, and advisory positions with private and public sector entities, including New Zealand Inland Revenue. His focus is on innovative entrepreneurial companies or larger organisations driving inspirational transformation. Prior to his governance career, Marcel had a long career in information

technology management, including five years as chief information officer of Fonterra, and previous to that he was managing principal of Unisys New Zealand. He has worked across many industries and government entities, in number of countries. He is also a member of the Institute of Directors and the Business for Social Responsibility network.

Chair of the Angel Association of NZ

New top Angel

Texus Fibre: Auckland company developing wool fibre filters to reduce air pollution through use in air filters and respirators. First investment round: $0-250k. Lead investor: Sparkbox Ventures.

Photonic Innovations: is commercialising a novel gas detection technology developed at Otago University. First investment round: $0-250k. Lead investor: Powerhouse Ventures.

Roholm: has developed the Black Ice cold hair straightener. First investment round: $0-250k. Lead investor: Enterprise Angels.

LearnKo: A Wellington company providing online English-language tuition through face-to-face lessons with tutors. First investment round: $250-500k. Lead investor: Angel HQ.

Supreme Biotechnologies: a bio-tech company producing bioactive compounds derived from micro-algae grown at its plant in Nelson. First investment round: $1-1.5m. Lead investor: Ice Angels.

Expander: An Auckland solutions provider specialising in managing counterfeit risk, traceability and brand engagement, operating primarily in the FMCG sector. First investment round: $0-250k. Lead investor: Angel HQ.

Parrot Analytics: provides information to users such as musicians and film-makers on where in the world their digital content is being accessed and used. First investment round: $1-1.5m. Lead investor: Ice Angels.

Publons: shares scientific articles online, giving peer reviewers an open platform to publish critiques and engage in discussions with other academics. First investment round: $0-250k. Lead investor: Angel HQ.

Social Code: A Wellington company which has develop a behaviour change mobile platform which helps prevent and manage chronic disease. First investment round: $205-500k. Lead investor: K1W1.

Stqry: A mobile application which helps arts organisations such as museums, art galleries and zoos engage visitors by telling their stories. First investment round: $500-750k. Lead investor: Ice Angels.

Techion: has developed a diagnostic tool enabling farmers to take digital images of animal samples for immediate online lab analysis First investment round: $0-250k. Lead investor: Enterprise Angels.

Puteko: Puteko’s interactive ‘colAR Mix’ makes colouring pages come to life with drawings ‘popping’ out as 3D models on mobiles, tablets or portable devices. First investment round: $0-250k. Lead investor: Sparkbox Ventures.

Wipster: A Wellington company which has developed video review and approval software. First investment round: $0-250k. Lead investor: Angel HQ.

Menixis: Menixis is a technology development company specialising in particle analysis for use in animal and human parasite diagnosis. First investment round: $0-250k. Lead investor: Enterprise Angels.

The Young Company Finance Index recorded 14 companies receiving a first round of angel investment in the last six months of 2013.

New

bies

11 Star

tup.

The

You

ng C

ompa

ny F

inan

ce R

epor

t.

Priv

ate

Fina

ncin

g D

eals

12Star

tup.

The

You

ng C

ompa

ny F

inan

ce R

epor

t.

MonthName of Company Sector Round Stage Range

Lead Investor

Syndication Partners Location

Jul-13 1Above Food, Beverage and Tobacco

3 Start Up $0-$250k ICE Angels Private Investors AKL

Jul-13 Biolumic Software and Services T1 Seed $0-$250k Manawatu Investment Group

SCIF PMR

Jul-13 CropLogic Software and Services 3 Seed $500-$750k Powerhouse Ventures

SCIF, Private Investors

CHC

Jul-13 Googly Inc Limited

Consumer Durables and Apparel

T1 Seed $0-$250k Sparkbox SCIF, K1W1 AKL

Jul-13 HSN Group Software and Services 2 Start Up $750-$1m ICE Angels SCIF, GD1 Nominees

AKL

Jul-13 LearnKo Limited Software and Services 1 Seed $250-$500k Angel HQ SCIF, Private Investors

WLG

Jul-13 MEA Mobile Software and Services 2 Expansion $250-$500k K1W1 Founders ALK

Jul-13 Menixis Limited Health Care Equipment and Services

1 Start Up $0-$250k Enterprise Angels

SCIF, Private Investors

DUD

Jul-13 MusicHype Software and Services 3 Start Up $0-$250k Angel HQ SCIF, MIG, Private Investors

WLG

Jul-13 Podscape Holdings Limited

Software and Services T3 Seed $0-$250k Sparkbox SCIF, Angel HQ, Cure Kids, Enterprise Angels, MIG

AKL

Jul-13 Publons Limited Software and Services 1 Seed $0-$250k Angel HQ SCIF, Private Investors

AKL

Jul-13 Roholm Limited Consumer Durables and Apparel

1 Seed $0-$250k Enterprise Angels

SCIF TRG

Jul-13 Techion Group Limited

Health Care Equipment and Services

1 Start Up $0-$250k Enterprise Angels

SCIF DUD

Jul-13 Times-7 Research Ltd

Technology Hardware and Equipment

T2 Start Up $0-$250k Angel HQ SCIF, Private Investors

WLG

Jul-13 Vesper Marine Consumer Durables and Apparel

5 Start Up $250-$500k ICE Angels SCIF, Private Investors

AKL

Jul-13 Zeosoft Commercial Services and Supplies

4 Start Up $750-$1m Movac SCIF, Private Investors

AKL

Aug-13 Expander Software and Services 1 Seed $0-$250k Angel HQ SCIF, Private Investors

AKL

Aug-13 Footfalls and Heartbeats

Health Care Equipment and Services

T1 Seed $0-$250k Sparkbox SCIF, GD1 Nominees, Pacific Channel

CHC

Aug-13 Hydroxsys Ltd Materials T1 Seed $0-$250k Sparkbox SCIF, ICE Angels AKL

Aug-13 Mobot Industries Ltd

Capital Goods T1 Seed $0-$250k Sparkbox SCIF, GD1 Nominees

AKL

Aug-13 Mohio Software and Services T2 Seed $0-$250k Sparkbox SCIF, GD1 Nominees

AKL

Aug-13 Parrot Analytics Software and Services 1 Seed $1m-$1.5m ICE Angels SCIF AKL

Aug-13 Plantier Development Limited

Household and Personal Products

2 Start Up $0-$250k Venture Accelerator Group

SCIF NSN

Aug-13 Roholm Limited Consumer Durables and Apparel

T1 Seed $0-$250k Enterprise Angels

SCIF TRG

Aug-13 SmartShow Limited

Software and Services 2 Start Up $0-$250k Enterprise Angels

SCIF, Angel HQ, Private Investors

WLG

Aug-13 WIP App Ltd Software and Services 1 Seed $0-$250k Angel HQ SCIF, Private Investors

WLG

Sep-13 Biolumic Software and Services 2 Seed $0-$250k Sparkbox SCIF, ICE Angels, MIG

PMR

Sep-13 Hunter Saftey Lab Ltd

Consumer Durables and Apparel

T1 Seed $250-$500k Angel HQ SCIF, Private Investors

WLG

Sep-13 Puteko Software and Services T1 Seed $0-$250k Sparkbox SCIF, Private Investors

CHC

Sep-13 Quantec Pharmaceuticals, Biotechnology and Life Sciences

3 Seed $500-$750k AngelLink SCIF, Private Investors

HLZ

Sep-13 Stolen Rum Food, Beverage and Tobacco

2 Start Up $0-$250k ICE Angels Private Investors AKL

Sep-13 Stqry Software and Services 1 Start Up $500-$750k ICE Angels Private Investors WLG

Sep-13 Texus Fibres Materials 1 Seed $0-$250k Sparkbox SCIF, GD1 Nominees

WLG

Priv

ate

Fina

ncin

g D

eals

13 Star

tup.

The

You

ng C

ompa

ny F

inan

ce R

epor

t.

MonthName of Company Sector Round Stage Range

Lead Investor

Syndication Partners Location

Sep-13 TranscribeMe Pharmaceuticals, Biotechnology and Life Sciences

2 Start Up $500-$750k ICE Angels Private Investors AKL

Oct-13 LightKnight International Limited

Commercial Services and Supplies

2 Start Up $250-$500k ICE Angels SCIF AKL

Oct-13 Charge Communications Limited

Software and Services 2 Start Up $0-$250k ICE Angels SCIF, Private Investors

AKL

Oct-13 Nikos Software and Services Exit 0 Confidential Sparkbox AKL

Oct-13 Puteko Software and Services 1 Seed $0-$250k Sparkbox SCIF, GD1 Nominees

CHC

Oct-13 Simtics (Go Virtual Medical Ltd)

Software and Services 7 Start Up $0-$250k Sparkbox SCIF, Private Investors

AKL

Oct-13 Trigger Happy Software and Services 3 Start Up $1m-$1.5m K1W1 Private Investors AKL

Oct-13 Veritide Technology Hardware & Equipment

4 Seed $250-$500k Powerhouse Ventures

SCIF, Private Investors

CHC

Oct-13 WatchMe Software and Services 1 Seed $250-$500k Movac SCIF, Angel HQ, Sparkbox, Private Investors

WLG

Nov-13 Global Leading Design

Materials T1 Seed $0-$250k Otago Angels

SCIF DUN

Nov-13 Hydroxsys Ltd Materials 2 Seed $750-$1m Sparkbox SCIF, Private Investors

AKL

Nov-13 KayaSand Energy 2 Start Up $0-$250k ICE Angels AKL

Nov-13 Plantier Development Limited

Household and Personal Products

T2 Start Up $0-$250k Venture Accelerator Group

SCIF NSN

Nov-13 Solar Bright Consumer Durables and Apparel

2 Start Up $0-$250k Powerhouse Ventures

SCIF, Private Investors

CHC

Nov-13 Triplejump Ltd Software and Services 5 Early Expansion

$1.5m-$2.5m K1W1 Other Angel and Private investors

AKL

Dec-13 Booktrack Holdings Limited

Software and Services 5 Start Up $2.5m+ Sparkbox SCIF, K1W1 AKL

Dec-13 Expander Software and Services T1 Seed $0-$250k Angel HQ SCIF, Private Investors

AKL

Dec-13 Footfalls and Heartbeats

Household and Personal Products

2 Start Up $1m-$1.5m Pacific Channel

SCIF, Private Investors

AKL

Dec-13 Hydroworks Ltd Capital Goods 2 Start Up $250-$500k Powerhouse Ventures

CHC

Dec-13 Hydroxsys Ltd Materials 3 Seed $1.5m-$2.5m Sparkbox SCIF, Private Investors

AKL

Dec-13 Im-Able Ltd Health Care Equipment and Services

2 Start Up $750-$1m Cure Kids Ventures

SCIF, Enterprise Angels, Private Investors

AKL

Dec-13 Mohio Software and Services 3 Seed $500-$750k Sparkbox SCIF, Private Investors

AKL

Dec-13 Motim Technologies Ltd

Software and Services 2 Start Up $0-$250k Powerhouse Ventures

SCIF, Private Investors

CHC

Dec-13 Nextspace Software and Services 4 Start Up $250-$500k ICE Angels AKL

Dec-13 Photonic Innovations

Technology Hardware and Equipment

1 seed $0-$250k Powerhouse Ventures

SCIF DUN

Dec-13 Pictor Limited Health Care Equipment and Services

3 Start Up $500-$750k Cure Kids Ventures

SCIF, ICE Angels, K1W1, Private Investors

AKL

Dec-13 Puteko Software and Services T1 Seed $0-$250k Sparkbox SCIF, GD1 Nominees, Private Investors

CHC

Dec-13 Social Code Pharmaceuticals, Biotechnology and Life Sciences

1 Start Up $250-$500k K1W1 Other Angel Investors

WLG

Dec-13 Supreme Biotechnologies

Pharmaceuticals, Biotechnology and Life Sciences

1 Start Up $1m-$1.5m ICE Angels Private Investors AKL

Dec-13 Texus Fibres Materials T1 Seed $0-$250k Sparkbox SCIF, GD1 Nominees

AKL

Dec-13 Times-7 Research Ltd

Technology Hardware and Equipment

T2 Start Up $0-$250k Angel HQ SCIF, Private Investors

WLG

Ang

el In

vest

men

t Ove

rvie

wSt

artu

p. T

he Y

oung

Com

pany

Fin

ance

Rep

ort.

14

Top 10

Software and Services Technology Hardware and Equipment Pharmaceuticals, Biotechnology and Life Sciences Materials Health Care Equipment and Services Consumer Durables and Apparel Food, Beverage and Tobacco Capital Goods Consumer Services Commercial Services and Supplies

Capital Invested by Sector: Number of Deals

32%

19%12%

8%

7%

6%

3%

3%2%

2%Other

42%

13%

11%

6%

6%

5%

4%

4%3% Other

Top 10

Software and Services Pharmaceuticals, Biotechnology and Life Sciences Technology Hard Ware and Equipment Food Beverage and Tobacco Health Care Equipment and Services Materials Consumer Durables and Apparel Capital Goods Consumer Services Energy

Capital Invested by Sector: Percent of Dollars

Ang

el In

vest

men

t Ove

rvie

w

15 Star

tup.

The

You

ng C

ompa

ny F

inan

ce R

epor

t.

Capital Invested by Round

$

$5m

$10m

$15m

$20m

$25m

2006 2007 2008 2009 2010 2011 2012 2013Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1 2 3 4 5 6 7 8 9 Exit

2006 2007 2008 2009 2010 2011 2012 2013

$

$5m

$10m

$15m

$20m

$25m

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Capital Invested by Stage

Seed Start Up Early Expansion Expansion

Top 10

Auckland Wellington Christchurch Dunedin Palmerston North Hamilton Tauranga USA Hawkes Bay Nelson

Capital Invested by Region : Percent of Dollars

55%

10%

10%

7%

5%

5%2% +1%

Young Company Finance Report is prepared by the NZ Venture Investment Fund in association with the Angel Association of NZ and its members. To subscribe or comment, email ycf@nzvif.co.nz or for more information visit nzvif.co.nz